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US heads suggest recession easing | US heads suggest recession easing |
(9 minutes later) | |
US President Barack Obama and Federal Reserve head Ben Bernanke have said there are signs the slowdown is easing but underline that times remain tough. | US President Barack Obama and Federal Reserve head Ben Bernanke have said there are signs the slowdown is easing but underline that times remain tough. |
Mr Obama referred to "signs of economic progress" and Mr Bernanke talked of "tentative signs" that the rate of contraction was calming. | Mr Obama referred to "signs of economic progress" and Mr Bernanke talked of "tentative signs" that the rate of contraction was calming. |
But both men, speaking independently, said a recovery would take time. | But both men, speaking independently, said a recovery would take time. |
Their statements came after earlier data showed disappointing retail sales for March after two months of rises. | Their statements came after earlier data showed disappointing retail sales for March after two months of rises. |
Analysts had expected a rise in retail sales, so the figures indicated that consumers were still cautious about spending. | Analysts had expected a rise in retail sales, so the figures indicated that consumers were still cautious about spending. |
Mr Obama, who was speaking at Georgetown University, pointed to the US government's housing plan as a factor in boosting the economy, as the number of people refinancing their loans increased. | |
He added that support for the auto and student loan markets had also contributed to an easing of credit conditions along with progress at this month's G20 meeting. | |
But he warned that more work needed to be done and that "credit was not flowing nearly as easily as it should". | |
He also said 2009 would be a hard year for the US economy, when there would be more job losses, more repossessions and "more pain before it ends". | |
Financial markets | |
And Mr Bernanke, who was talking to students at Moorehouse University in Atlanta, said: "A levelling out of economic activity is the first step towards recovery". | |
But he added: "We will not have a sustainable recovery without a stabilisation of our financial system and credit markets." | |
The central bank has reduced interest rates to near zero in a move to boost the economy and encourage spending. | |
But problems in the credit markets have continued to make borrowing for individual and firms hard and expensive. |